Requirements on users of consumer reports 15 USC s 1681m

When businesses or individuals want to check your credit report for reasons like evaluating you for a loan, employment, renting a property, or providing credit, there are specific rules they have to follow. These rules are part of the Fair Credit Reporting Act and the section in question, 'Requirements on users of consumer reports 15 USC § 1681m,' outlines what someone must do when they use your credit report:

• Risk-Based Pricing Notice: When a company uses your credit report to offer you less favorable terms compared to other consumers due to your credit history, they must inform you about this. For instance, if your car loan has a higher interest rate than what is offered to customers with better credit scores, the lender should provide you with a notice that explains this. This is called a "Risk-Based Pricing Notice."
• Credit Score Disclosure: If your credit score affects any credit decision or the terms of credit offered to you, the user of the report has to tell you the credit score they used. This must include information about the score, the range of possible scores, the main factors that affected the score, the date when the score was created, and the reporting agency that provided it. An example would be if a credit card company decides your interest rate based on your credit score, they need to give you your score and explain how it influenced their decision.
• Adverse Action Notice: If a company takes adverse action against you (like denying your application for credit, employment, insurance, or a rental) based on any information in your credit report, they have to give you an "Adverse Action Notice." This notice must tell you about the action taken, the name, address, and phone number of the agency that issued the report, your right to obtain a free report from that agency within 60 days, and your right to dispute the accuracy or completeness of any information in the report. For example, if a bank denies your mortgage application because of your credit history, they have to provide this notice, so you know why you were denied and can check the report for accuracy.

These requirements are there to make sure you're treated fairly and to give you a chance to verify and correct any mistakes in your credit report. They ensure transparency and provide you with much-needed information to understand how your credit information is being used.